Stocks pull ahead
in choppy trading

NEW YORK » Stocks moved higher in choppy trading yesterday as investors focused on strong earnings news from Intel Corp. instead of a government report that high oil prices and lower exports had pushed the U.S. trade deficit to a record level.

Anxiety about Wall Street's slow start to the year has made some investors wary of making big bets as a number of companies prepare to release quarterly earnings, and a mixed bag of reports and outlooks did little to build confidence. It made for a confusing market yesterday, as stocks meandered in and out of positive territory, but most analysts remained upbeat about the prospects for 2005.

The Dow Jones industrial average was up 61.56, or 0.58 percent, at 10,617.78, making most of its gains in the final hour of trading.

The broader gauges were also higher. The Standard & Poor's 500 index added 4.71, or 0.40 percent, to 1,187.70. The Nasdaq composite index rose 12.91, or 0.62 percent, to 2,092.53.

In Washington, the Commerce Department said America's trade deficit soared to an all-time high of $60.3 billion in November, reflecting record levels for imports of everything from oil and consumer goods to farm products. The 7.7 percent rise from an imbalance of $56 billion in October beat the previous monthly record, and caught economists by surprise; they'd forecast a slight narrowing of the trade gap.

The news prompted weakness in the dollar, which dropped sharply against the euro and other world currencies after the deficit data was released. Treasury Secretary John Snow has said repeatedly that the Bush administration supports a "strong dollar" policy, but some analysts believe the U.S. government is content to see the dollar fall because it makes U.S. exports cheaper.

Chip maker Intel rose 62 cents to $23.16 after beating Wall Street earnings estimates by 2 cents a share and reporting stronger than expected revenues on strong holiday sales of computer and cell phone chips. It also issued an optimistic outlook for the first quarter.

OfficeMax Inc. tumbled 4.7 percent, or $1.42, to $28.88, after saying its earnings report would be postponed pending an internal accounting probe. The office supplies retailer also announced the resignation of its chief financial officer, who was stepping down after only two months on the job; the former CFO will return on an interim basis while OfficeMax seeks a permanent replacement.